Yahoo Touts Display Ad Gains in Q3, But Revenue Is Flat

  |  October 19, 2010   |  Comments

Double-digit growth in display ad revenue helped offset some declines in search.

Double-digit growth in Yahoo's display ad revenue helped offset some declines in search revenues as it posted a 113 percent rise in operating income for the third quarter 2010 to $396 million. However revenue increased just 2 percent compared to the same period last year, to $1.6 billion.

During a conference call with analysts, CEO Carol Bartz noted the transition of its search operations to Microsoft and Bing remains on schedule, adding that algorithm-based search in the U.S. and Canada transitioned last month with paid search set to follow. But she conceded that over the short term search revenues have been negatively impacted as some advertisers waited to move to Microsoft adCenter.

Yahoo's real strength during the quarter was on the display ad side. The company reported a 17 percent Q3 revenue rise on its owned and operated sites to $465 million - though that was off slightly from the $468 million in display revenue from the second quarter of this year. While the company did report a 4 percent decline in page views - troubling for any portal - Bartz touted the company's continuing progress to better target and deliver the right audience to its advertisers.

She avoided any speculation on changes to Yahoo’s investment in China search company Alibaba, only noting that the two companies are committed to a productive business relationship.

On the mobile front, during the quarter Yahoo released seven new applications for the Android platform as well as updated the Yahoo home page for iPhone. It also introduced several new iPhone apps, including fantasy football and an updated Messenger that allows users to make voice and video calls over 3G and Wi-Fi networks from their Apple phone.

Yahoo CFO Tim Morse predicted that for the fourth quarter, display advertising revenue may not show the same momentum it has in recent quarters, but suggested that was more a function of the overall consumer uncertainty heading into this holiday season compared with last year.



David Ward is a veteran freelance journalist based in San Diego, who currently focuses on online marketing, digital entertainment and the growth on new consumer technologies such as 3D in the home.

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Media newsletters delivered right to your inbox. Subscribe today!



Featured White Papers

US Consumer Device Preference Report

US Consumer Device Preference Report
Traditionally desktops have shown to convert better than mobile devices however, 2015 might be a tipping point for mobile conversions! Download this report to find why mobile users are more important then ever.

E-Commerce Customer Lifecycle

E-Commerce Customer Lifecycle
Have you ever wondered what factors influence online spending or why shoppers abandon their cart? This data-rich infogram offers actionable insight into creating a more seamless online shopping experience across the multiple devices consumers are using.




  • SEO Specialist
    SEO Specialist (Marcel Digital) - ChicagoSearch Engine Optimization (SEO) Specialist   Marcel Digital is an award winning digital marketing...
  • SEO / SEM Manager
    SEO / SEM Manager (CustomInk) - FairfaxAre you a friendly, motivated, and inquisitive individual? Are you a positive, out-going leader? Are you...
  • SEO Analyst
    SEO Analyst (XO Group) - New YorkSEO Analyst @ XO Group About this Job, You and Our Team: The XO Group SEO Team is looking for you, a passionate...